“Every banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone: but what we have requires no proof. The whole rests on an instinctive confidence generated by use and years.”

Walter Bagehot ‘Lombard Street’

William Black describes briefly how Lehman Brothers was the source of sub- prime and ‘Liar Loans’ beginning no later than 2001, He indicts the regulatory non- response of the Fed and other agencies.

“We have known for a decade that these are frauds.”